Activision Pays $42 Million to Former Infinity Ward Developers

Source: Activision Logo/ Wikipedia

After finishing their review of the evidence during the pre-trial leading up to its high-profile lawsuit, Activision believes that it didn’t implicate the constituents of the so-called Infinity Ward Employee Group. That’s why they’ve decided to issue a check worth $42 million to IWEG’s lawyer. This includes the ten percent interest, in addition to the $22 million that was paid for the promised first quarter launch bonus.

Activision vs. Infinity Ward

It should be recalled that the game developer Activision was sued by former Infinity Ward heads Jason West and Vince Zampella. It is due to breach of contract after they were terminated in 2010.

On the other hand, the game developer filed a countersuit against the former Infinity Ward heads due to insubordination. They also included Electronic Arts, claiming that it was scheming with West and Zampella to “inflict serious harm on the company.”

Attempting to Look Good

After paying $42 million to former Infinity Ward developers, IWEG lawyer Bruce Isaacs commented that it was Activision’s “cynical attempt to look good before the jury trial.”

“I can confirm for you that it happened today. I can also tell you that although it is a meaningful payment it is only a small portion of what we are seeking in litigation. It is outrageous that they made us wait, they obviously knew they owed the money and this just shows that they breached the contract.”

It was in 2010 when the original IWEG suit included 38 plaintiffs. Among them are Infinity Ward’s former lead designer Todd Alderman and lead software engineer Frank Gigliotti. Both of them took a position with West and Zampella’s Respawn Entertainment. According to them, Activision failed to pay them royalties for their work on Call of Duty: Modern Warfare 2.

Activision’s Payment is Not Part of the Settlement

Meanwhile, it was reported that Activision’s $42 million payment is not part of the settlement. Activision CEO Bobby Kotick pointed out that since the evidence that they’ve found didn’t implicate the 40 members of IWEG, they opted to pay the amount that they believe they owe and focused on the West-Zampella lawsuit instead.

In a statement Isaacs released in G4 last 2010; he said that the game developer owes its former devs around $75 million to $125 million. The company also have previous due worth $54 million from 2009 profits alone and unpaid bonuses after that. IWEG is also charging them an additional $75 million to $500 million in “punitive damages.”

Since the $42 million worth of payment is not part of the settlement, IWEG is planning to pursue the remainder of the money that they are entitled to. As Isaacs added:

“They are just as interested as they were before hand. We are seeking all kinds of bonuses per contract. This payment relates to one particular game and one particular time period and one particular bonus.”

Leave a Comment